This metric is intended to capture if the organization had a due diligence process in place to identify, prevent, mitigate, and address adverse human rights impacts as of the end of the reporting period.
Human rights due diligence processes should include assessing actual and potential human rights impacts, integrating and acting upon the findings, tracking responses, and communicating how impacts are addressed.
Human rights due diligence:
Should cover adverse human rights impacts that the business enterprise may cause or contribute to through its own activities, or which may be directly linked to its operations, products or services by its business relationships;
Will vary in complexity with the size of the business enterprise, the risk of severe human rights impacts, and the nature and context of its operations;
Should be ongoing, recognizing that the human rights risks may change over time as the business enterprise’s operations and operating context evolve.
Adverse human rights impacts refer to negative effects on individuals or communities that result from the activities of an organization. These impacts can occur as a result of an organization's operations, products, services, or business relationships. Examples of adverse human rights impacts can include, but are not limited to, forced labor, discrimination, displacement, restriction of freedom of speech, denial of fair wages, and environmental degradation. Adverse human rights impacts can also be caused by the failure of an organization to take steps to prevent or mitigate negative impacts associated with its operations or supply chain.
For more information on human rights due diligence, see the following resource: https://www.ohchr.org/sites/default/files/documents/publications/guidingprinciplesbusinesshr_en.pdf